Rural non farm employment in India : Access, income and poverty impact

Attention has been paid to the significance of the non-farm sector in the rural Indian economy since the early 1970s. The importance of earnings from secondary non-farm occupations is not well documented. In this paper an attempt is made to assess the contribution of the nonfarm sector across population quintiles defined in terms of average per capita income. The correlates of employment in the non-farm sector and the direct impact of a growing non-farm sector on agricultural wage rates in rural India have also been examined. The study is based on rural data from 32,000 households belonging to 1765 villages across all parts of India collected by the National Council of Applied Economic Research in 1993-94. Analysis shows that non-farm incomes account for a significant proportion of household income in rural India with considerable variation across quintiles and across major Indian states. Education, wealth, caste, village level agricultural conditions, population densities and other regional effects influence in determining the access to non-farm occupations. Direct contribution of the nonfarm sector to poverty reduction is possibly quite muted as the poor lack the assets. It has also been found that the growth of certain non-farm sub-sectors is strongly associated with higher agricultural wage rates. The analysis presented in this study suggests that the policy makers seeking to maximise the impact of an expanding non-farm sector on rural poverty, should concentrate on two fronts. First, efforts should be focused on removing the barriers to the entry of the poor into the non-farm sector. This involves improving the educational level in rural areas. Second, the policy makers should note the strong evidence of an impact on agricultural wages of the expansion in rural construction employment.EmploymentRural EmploymentPoverty Eradication

Determinants of maternal health care utilisation in India : Evidence from a recent household survey

In India, utilisation of basic health services has remained poor. The reasons may be low levels of household income, high illiteracy and ignorance, and a host of traditional factors. In this paper an attempt is made to discuss the issues associated with the demand and supply of the five measures of maternity care-antenatal care, blood pressure check up, place of delivery, use of trained help at the time of delivery and postnatal care. Econometric analysis is undertaken to find out the determinants of the use of reproductive health care services among rural Indian households. Rural data from 32,000 households belonging to 1765 villages across all parts of India was collected by National Council of Applied Economic Research in 1994. The multi-model survey was conducted both at the national and state level. The analysis pertains to 7635 women in the reproductive age group who delivered a child in the year before the survey. The focus on the role of education, information and economic factors as determinants of health care accessibility and their utilisation is the speciality of this analysis. Analysis shows that education and information variables significantly increase the utilisation rates for prenatal, child delivery and postnatal health care. Women with primary education are more likely to use maternal health services as compared to illiterate women, even after controlling for income and health care supply factors. Exposure to media increases the probability of reproductive health care utilisation. Economic factors such as wages and income are important only for the utilisation of child delivery services. Access to locally available health services significantly increases maternity care use. An important health care facility in this respect has been the village level ICDS centre. Further, probit regressions analysis is used to xamine the impact of individual, household and community level variables on the above choices of reproductive health care.Health CareMaternal Health CareReproductive Health Care

Preliminary evidence on internal migration, remittances, and teen schooling in India:

"Migration can serve as an outlet for employment, higher earnings, and reduced income risk for households in developing countries. We use the 2004–2005 Human Development Profile of India survey to examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas. We employ a propensity score–matching approach to account for the selectivity of households into receiving remittances. We interpret the results conservatively due to the cross-sectional nature of the data. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India." from authors' abstractMigration, Transfers, Human capital, Labor supply, Urban-rural linkages, Nonfarm rural development, Development strategies,

Income Inequality in Rural India: Decomposing the Gini by Income Sources

This paper examines income inequality in rural India in 1993 and 2005. It attempts to ascertain the contribution of different income sources to overall income inequality, and change in their relative importance between 1993 and 2005 through decomposition of Gini coefficient. The paper finds that income inequality has increased between 1993 and 2005. Agriculture income continues to contribute majorly in total income and income inequality; however its share in total income and total income inequality has declined significantly. A marginal increase in agriculture and salaried income leads to increase in inequality; however, a marginal increase in labor income (both agriculture and non-agriculture) lead to reduction in the income inequality.Gini decomposition, income inequality, income sources, India

Indexing human development in India : Indicators, scaling and composition

The paper analyses methodological issues concerning selection of indicators, making them scale-free and construction of composite indices within the framework of measuring human development. It reviews the existing literature in the area and highlights the key areas of concern from the viewpoint of methodology of aggregation. It discusses the implications of the assumptions underlying different techniques, currently being used in India, in the context of an empirical exercise of constructing an index of human development at state level. It examines the advantages and disadvantages of these techniques and proposes improvements therein for bringing them closer to empirical reality and thereby increasing their acceptability among the planners and policy-makers. The study suggests that exercises at determining the levels of human development at the state or district level by official agencies like the Planning Commission, concerned ministries or an international agency must enjoy large acceptability so that these can be used in policy-making. Agreements must be obtained in terms of choice of indicators, scaling, methodology of composition, etc. Establishing certain degree of uniformity in methodology through deliberations in a committee at the highest level (as was done in case of measuring poverty) will accord credence to the results and help clear the uncertainty and inconclusiveness that characterise the current debate.Human DevelopmentHuman Development Index

The beginning of fertility decline in South India : a micro-study of a cluster of four South Indian villages

Society in India has long been regarded to be traditional as well as one based on the unilineal extended system with rigid rules and principles. Yet, of late there have been changes in the social and economic spheres. Of vital demographic importance is a recent decline in both fertility and mortality. In order to understand the nature and causes of the demographic transition it was essential to undertake an anthropological investigation of the rural population. Village level surveys and in-depth interviews were best suited to undertake this task. A cluster of four South Indian villages were, therefore, studied for this purpose using a micro-approach. The social structure was found to be a function of caste and the traditional occupational affiliations largely determined the current economic status. Profound changes, nevertheless, were noticed in various walks of life and have occurred especially since Independence as a result of government programmes. A beginning of fertility decline in this part of the country was found running parallel to these changes. The decline in fertility has been largely a function of marital fertility associated with changes in the intrinsic behaviour of the individuals stemming from changes in intra-family and inter-family relationships. The unilineal extended family system appears to have given way to a bilateral extended system in which the affines are playing a greater role. The young are assuming decision-making responsibilities relatively early and women appear to have progressed to a higher level of particiaptaion in the family and fertility decision-making. The pattern is that such changes are more frequent in the large heterogeneous villages while the smaller and remote villages are yet to experience the forces of social change. A moderate increase in literacy, an exposure to urban influence and the growing importance of monetization have enabled villagers to think and act more indepedently than in the past and this has made them more secular. Although in specific groups the intention to accept the modern concepts such as family planning and education appears to be increasing, it is found that there are differentials between villages and between various groups of people. It is suggested that programme implementation be intesnified, failing which these differentials may further widen posing a threat to the social and economic progress

Household expenditure on elementary education : Implications for cost recovery mechanisms

This paper presents the pattern of household expenditure on elementary education according to types of schools (such as government, aided and private) for major states and all India. It is hypothesised that the household expenditure on education reflects household demand for education besides ability to pay for education. Households in the highest income group spend about three times more on children's education than households in the low income groups. Household expenditure on education is higher among the large landowners, the upper segment above the poverty line groups, minorities, cases where both parents are literate, and in 'developed' villages. India typically has a high expenditure elasticity and low marginal propensity to spend on education. Very high expenditure elasticity confirms the fact that the Indian expenditure behaviour is entrapped in the poverty syndrome, which makes education a superior good at any given level of income and price constraint. If the goal of education for all has to be realised in the near future, community financing is urgently required both to supplement government expenditure and to improve quality of education and to alleviate supply constraints. In spite of such efforts, children belonging to poorer households may not attend schools because of other direct costs and also because of the opportunity cost attached to child labour. This paper therefore discusses the mechanisms, that can help to ensure, both enrolment and continuation of pupils from the poorer classes at the local and village level in a system of education based on community financing and participation.EducationElementary EducationHousehold ExpenditureEducational Expenditure

Assessment of outreach and benefits of national rural employment guarantee scheme of India

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Rural income and employment diversity in India during 1994 and 2005

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